The Project Budget
Project budgets, similar to resource plans, are a reflection of project work and the timing of that work. A comprehensive budget provides management with an understanding of how funds will be utilized and expended over time for projects or operations.
Building the Planned Project Budget
The Work Breakdown Structure (WBS) is the basis for any budget. The WBS includes all the work necessary to create the product of the project. The WBS is created through a decomposition process resulting in deliverables defined at the lowest level of the WBS--work package or what is called a 'task' at Uname.
All of the efforts used in producing the deliverable of each task can be defined in terms of cost. Labor, materials, facilities, services and overhead are examples of costs that may be expended in producing the deliverable of the task.
The sum of all tasks within the WBS constitutes the total budget of the project. Uname performs bottom-up budgeting, which means that the tasks roll up into summary task totals, and the project total represents the sum of all tasks planned and actual costs.